January 24, 2025
Thrive in 2025:
A risk management overview for red meat producers
We understand the unique challenges you face as a South African red meat producer and at IntegriSure, we are committed to supporting you. The year ahead will once again present hurdles, such as the threat of disease outbreaks, the impact of climate change, and the never-ending pressure of rising input costs. While this article provides an overview of these challenges, we will explore each one in detail, along with the available risk solutions, in a series of articles throughout the year.
The good news is that it’s not all doom and gloom: With the right risk management strategies, it is possible to thrive in 2025, despite these challenges.
Disease outbreaks, particularly foot-and-mouth disease (FMD), remain a significant threat. Robust biosecurity measures, such as enhanced fencing and disinfection protocols, are paramount. To safeguard your herd and maintain market access, it is crucial to strictly adhere to vaccination schedules and explore disease control insurance.
Due to ongoing climate change, weather patterns are increasingly unpredictable, affecting grazing land and water resources. This was yet again illustrated by the recent unexpected heavy downpours in parts of the country, while extended dry spells have also become more common. Drought insurance can offer financial support when the rain stays away. Ensure long-term sustainability by investing in water security measures such as boreholes and rainwater harvesting systems, and implement sustainable grazing practices such as rotational grazing and soil conservation to improve land resilience and productivity.
The persistent concern of stock theft is best combated through implementing robust security measures, including improved fencing, surveillance systems and livestock tracking technology. Collaborating with local security forums and communities can also help. For financial protection against losses, opt for stock theft insurance.
Rising input costs, including feed, fuel and labour, continue to put pressure on profit margins. Essentials to maintain profitability include optimising feed formulations, utilising feed additives, and identifying areas for cost reduction, such as energy-efficiency upgrades and waste minimisation. Also explore options such as feed price insurance or fuel price derivatives to hedge against input cost fluctuations
Global dynamics, exchange rate fluctuations, and evolving consumer preferences create market volatility. Employing price risk management strategies such as forward contracts or options trading can help mitigate price fluctuations. And by keeping abreast of market trends, consumer behaviour and international trade developments, you’ll be able to adapt to changing market conditions.
At IntegriSure, we are committed to helping you tackle and overcome these challenges. Our team of experienced brokers can provide expert guidance on risk assessment, insurance options and mitigation strategies. Trust us to help you identify and address potential vulnerabilities, implement effective risk management plans, and build a more resilient and sustainable business.
Manage your risks proactively and position your farm for continued success in the evolving red meat industry.
For tailor-made risk solutions, phone IntegriSure on 010 2712277 or email Kallie Cilliers at kallie@integrisure.co.za.
Floreer in 2025:
’n Risikobestuursoorsig vir rooivleisprodusente
Ons verstaan die unieke uitdagings wat jy as ’n Suid-Afrikaanse rooivleisprodusent in die gesig staar, en by IntegriSure is ons daartoe verbind om jou te ondersteun. In die jaar wat voorlê sal produsente steeds te doen kry met uitdagings soos moontlike siekte-uitbrekings, die impak van klimaatsverandering, en die ewige druk van stygende insetkoste. Terwyl hierdie artikel ’n oorsig van hierdie uitdagings bied, sal ons in ’n reeks artikels deur die jaar elke uitdaging in detail verken saam met die beskikbare risiko-oplossings,.
Die goeie nuus is dat dit met die regte risiko-bestuurstrategieë moontlik is om in 2025 te floreer, ten spyte van hierdie uitdagings.
Siekte-uitbrekings, veral bek-en-klouseer (BEK), bly ’n aansienlike bedreiging. Robuuste bioveiligheidsmaatreëls soos sterker omheining en ontsmettingsprotokolle is van die allergrootste belang. Dit noodsaaklik om streng by inentingsroosters te hou en siektebeheerversekering te oorweeg om jou kudde te beskerm en marktoegang te behou.
Voortgesette klimaatsverandering maak weerpatrone ál hoe moeiliker om te voorspel, en dit affekteer weiding en waterhulpbronne. Dit was onlangs weereens duidelik met die onverwagte swaar neerslae in dele van die land, terwyl verlengde droogtetye ook al hoe meer voorkom. Droogteversekering bied jou finansiële bystand wanneer die reën wegbly. Verseker langtermynvolhoubaarheid deur in watersekerheidsmaatreëls soos boorgate en reënwateropvangstelsels te belê, en implementeer volhoubare weidingspraktyke soos rotasieweiding en grondbewaring om jou boerdery veerkragtig en produktief te hou.
Die beste teëvoeter vir die hardnekkige probleem van veediefstal is robuuste veiligheidsmaatreëls, waaronder beter omheining, bewakingstelsels en veeopsporingstegnologie. Samewerking met plaaslike veiligheidsforums en gemeenskappe kan ook help. Oorweeg ook veediefstaldekking vir finansiële beskerming teen verliese.
Stygende insetkoste, waaronder voer, brandstof en arbeid, hou winsgrense onder druk. Noodsaaklike stappe wat winsgewendheid sal handhaaf sluit in die optimalisering van voerformules, die gebruik van voerbymiddels, en die identifisering van gebiede waar jy koste kan verlaag, soos met energieslim-opknappings en strenger afvalbeheer. Ondersoek ook moontlikhede soos voerprysversekering of afgeleide brandstofpryse om jou boerdery teen skommelinge in brandstof- en ander insetkoste te beskerm.
Internasionale gebeure, onbestendige wisselkoerse en veranderende verbruikersvoorkeure skep onstuimigheid in die mark. Die gebruik van prysrisikobestuurstrategieë, soos termynkontrakte of opsieverhandeling, kan prysskommelinge help teëwerk. En deur op hoogte te bly van marktendense, verbruikersgedrag en internasionale handelsgebeure, sal jy betyds by veranderende markomstandighede kan aanpas.
By IntegriSure is ons daartoe verbind om jou hierdie uitdagings te help aanpak en oorkom. Ons span ervare makelaars bied kundige leiding oor risikobepaling, versekeringsmoontlikhede en mitigasie-strategieë. Vertrou ons om die moontlike kwesbare areas vir jou boerdery te help identifiseer en hanteer, doeltreffende risikobestuursplanne te implementeer, en jou ’n meer veerkragtige, volhoubare onderneming te help bou.
Bestuur jou risiko’s proaktief en posisioneer jou boerdery vir volgehoue sukses in die dinamiese rooivleisbedryf.
Vir pasgemaakte risiko-oplossings, bel IntegriSure by 010 2712277 of e-pos Kallie Cilliers by kallie@integrisure.co.za.